CHARLOTTE, NC (WBTV) – Duke Energy North Carolina customers will soon pay less for electricity, but not before a temporary increase for the rest of the year.

Starting in January, the company announced a 3.6% rate cut, which will reduce the average monthly bill by about $5.

Before the cut, however, there will be a temporary rate increase that will add about two dollars to the average bill, starting this month and lasting through the new year.

Duke said the reason for the upcoming rate cut is falling fuel prices. Each year, the company adjusts the cost of fuel used to generate electricity at its power plants, and there is also the possibility of an even greater reduction due to government tax breaks for nuclear power plants.

Beginning of the year WBTV reported about a tariff increase for this year and planned increases for 2025 and 2026.

With the rate cut now set to take effect in 2025, Duke Energy’s Bill Norton addressed the question of whether customer concerns about the recent rate increase had anything to do with the cut.

“Last year we invested in the power grid. We’re doing nearly $8 billion worth of upgrades to make the grid more resilient so it can recover faster when there are power outages,” he said. “Those investments are still ongoing. But what’s happened now is that fuel prices have come down, which is offsetting almost all of the price increase from last year.”

Duke Energy has also proposed significant cuts in South Carolina, subject to approval.

Mecklenburg County residents who need help covering their energy costs can find assistance programs Here.

Related: Duke Energy rate reduction for customers in Carolinas: Find out when and how much

You can find ongoing reporting here:

All rights reserved.